This is a CU Colorado Springs student blog for urban economics the economics of social issues.

Tuesday, September 30, 2008

A sigh of relief and a sign of things to come or a calm before the storm

A day after the Stock Market plummeted 778 points, it has bounced back almost 500 points. This was done by bargain shoppers and others who saw the low prices as a chance to jump in and buy some stock. Maybe this trend will continue and the stock market will bounce back in no time. I mean in the middle of the page I was reading there was an advertisement for "Etrade"! Then again this could just be a fluke and our economy could fall more and more, unless some action is taken.

In response to our troubled financial situation, many have taken action to make sure they don't make the same mistake. "The benchmark London Interbank Offered Rate, or LIBOR, that banks charge to lend to one another, rose sharply Tuesday, making it more expensive and difficult for consumers and businesses to borrow money." "LIBOR for 3-month dollar loans rose to 4.05 percent from 3.88 percent on Monday. LIBOR for 3-month euro loans, meanwhile, rose to 5.27 percent, from 5.22 percent Monday." This will hopefully make it harder for banks to give out loans that can be seen as high risk and could probably fail. That's what got us into this situation in the first place...